Correlation Between ING Groep and Kinepolis Group
Can any of the company-specific risk be diversified away by investing in both ING Groep and Kinepolis Group at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining ING Groep and Kinepolis Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ING Groep NV and Kinepolis Group NV, you can compare the effects of market volatilities on ING Groep and Kinepolis Group and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in ING Groep with a short position of Kinepolis Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of ING Groep and Kinepolis Group.
Diversification Opportunities for ING Groep and Kinepolis Group
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ING and Kinepolis is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding ING Groep NV and Kinepolis Group NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinepolis Group NV and ING Groep is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on ING Groep NV are associated (or correlated) with Kinepolis Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kinepolis Group NV has no effect on the direction of ING Groep i.e., ING Groep and Kinepolis Group go up and down completely randomly.
Pair Corralation between ING Groep and Kinepolis Group
Assuming the 90 days trading horizon ING Groep NV is expected to generate 0.22 times more return on investment than Kinepolis Group. However, ING Groep NV is 4.63 times less risky than Kinepolis Group. It trades about 0.22 of its potential returns per unit of risk. Kinepolis Group NV is currently generating about -0.04 per unit of risk. If you would invest 782.00 in ING Groep NV on November 5, 2024 and sell it today you would earn a total of 16.00 from holding ING Groep NV or generate 2.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ING Groep NV vs. Kinepolis Group NV
Performance |
| Timeline |
| ING Groep NV |
| Kinepolis Group NV |
ING Groep and Kinepolis Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ING Groep and Kinepolis Group
The main advantage of trading using opposite ING Groep and Kinepolis Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ING Groep position performs unexpectedly, Kinepolis Group can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Kinepolis Group will offset losses from the drop in Kinepolis Group's long position.| ING Groep vs. Immolease Trust NV | ING Groep vs. Vastned Retail Belgium | ING Groep vs. EVS Broadcast Equipment | ING Groep vs. Ion Beam Applications |
| Kinepolis Group vs. Vastned Retail Belgium | Kinepolis Group vs. Home Invest Belgium | Kinepolis Group vs. Shurgard Self Storage | Kinepolis Group vs. EVS Broadcast Equipment |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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